New York, Boston, Washington, D.C., the Bay Area, Southern California and Seattle have been considered six leading markets for rental housing as the recession winds down and housing improves, a report notes.
Performances have been strong enough to encourage heavy competition and interest among investors, according to Apartment Finance Today. However, the level of activity may have hit the point where it makes sense to investigate other markets.
Secondary markets like Denver, Portland, Dallas and Houston are looking more interesting to many investors, the news source reports. While their fundamentals may not be quite as strong in some respects, they have been notable and the decrease in attention could make them more viable.
This move by investors became apparent in the second half of 2011, Marcus & Millichap’s managing director of research, Hessam Nadji, told AFT. At the same time, markets such as Austin, Nashville and Detroit have been better than the leading six in some respects, posting high rental property value increases.
Investors may find it beneficial to investigate secondary markets rather than going to the same few leading areas. A strong property management company can help turn these opportunities into profitable ventures.